PHILIPPINES Law and Practice Contributed by: Rashel Ann C Pomoy and Paolo Miguel Consignado, Villaraza & Angangco
1. Employment Terms 1.1 Employee Status
employment) or definite (eg, fixed-term employment and project-based employment), though this classifi - cation is not generally provided for under Philippine law. Formal Requirements of Employment Contracts Philippine law does not mandate that employment contracts be in writing for their validity, nor does it impose specific formal requirements. However, it is highly recommended to have a written contract to provide evidence of the terms and conditions agreed upon by the parties. Nevertheless, it must be noted that an employee’s status does not depend on the designation or the terms outlined in an employment contract. Instead, an employee’s status is defined by the actual nature of the work performed. As Article 295 of the Philippine Labour Code emphasises, this determination applies regardless of any written or oral agreements to the contrary. Further, in a recent case entitled Aragones v Alltech Biotechnology Corporation , G.R. No. 251736, 2 April 2025, the Philippine Supreme Court held that an employment relationship begins as soon as the employee has accepted the job offer from an employ - er. According to the Supreme Court, as a consensual contract, an employment contract is perfected as soon as the employee and the employer have agreed upon the terms and conditions of the employment contract, which is typically manifested by the employ - ee’s acceptance of the job offer. From that moment, an employment relationship is created, even if it has been agreed that the employee would commence actual work on a later date. 1.3 Working Hours Maximum Working Hours Under Article 83 of the Philippine Labour Code, the standard maximum working hours are eight hours per day, six days a week, totalling 48 hours per week. In addition, Article 91 of the Labour Code entitles the employee to a rest period of not less than 24 con - secutive hours after every six consecutive normal workdays.
Philippine law does not classify employees by wheth - er they are blue or white-collar workers. However, it is generally understood that blue-collar workers are those engaged in manual labour or skilled trades, typi - cally earning daily wages, such as construction work - ers and factory employees. In contrast, white-collar workers are typically involved in professional, mana - gerial, or administrative roles, receiving a monthly sal - ary, like office staff and managers. Instead, Philippine law provides for the following clas - sifications of employees, based on the nature and duration of the work performed: • regular employees: those who have been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer; • casual employees: those who perform work that is merely incidental to the principal business of the employer, where such work is for a definite period made known to the employee at the time of engagement; • project employees: those whose employment has been fixed for a specific project or undertaking, the completion or termination of which has been determined at the time of the engagement of the employee; • seasonal employees: those who work or perform services which are seasonal in nature, and the employment is for the duration of the season; • fixed-term employees: those hired for a specific period, with employment ending on a predeter - mined date; and • probationary employees: those employed on a trial basis, which generally lasts up to six months, to determine their qualification for regular employ - ment.
1.2 Employment Contracts Types of Employment Contracts
Similar to the classification of employees as provided above, employment contracts are typically structured based on the nature and duration of the work. These contracts may be construed as indefinite (eg, regular
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